Pre-Market Report – Friday 18 October: Dow hits record | Netflix up 4.8% on results

Wall Street ended mixed following stronger-than-expected retail sales data. The Dow gained 161 points, clocking its fourth-record close in the last five sessions. The S&P 500 eased 0.02%, paring earlier gains which saw the index touch a fresh record intraday high. The NASDAQ notched a 0.04% gain, while small caps Russell 2000 lost 0.25%. US retail sales rose 0.4% MonM in September, beating expectations of a 0.3% rise and significantly outpacing August’s 0.1% gain a sign consumer health remains resilient. US treasuries climbed on positive economic data. 10Y yield rose 7.7bps and 2Y yield gained 3.4bps. Market expectations the Fed needs to cut aggressively fell. The probability for a 25bps cut fell to 65.3% from 93.7% one day ago, and the likelihood the Fed holds rates steady jumped to 34.7% from 6.3% the previous day.

ASX to fall. SPI Futures down 27 points (-0.32%).

COMMODITIES

• Dalian iron ore dives as China stimulus disappoints.
• Oil prices edge higher on US crude stockpiles draw.
• Gold hits record highs on US election uncertainty, more policy easing.
• Copper at three-week low as funds switch to gold.
• US crude, fuel inventories fall last week, EIA.

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